Contract Design for V2G Smart Energy Trading

Abstract

The transition to a net zero energy system necessitates development in a number of directions including developing advanced electricity trading markets. Due to electricity markets being responsible for a large portion of carbon emissions, improving the electricity markets' method for determining energy transactions could have a significant impact on carbon reductions and thus facilitate this transition. V2X technology can be applied to regulate different energy markets, and thus reduce costs and carbon emissions by using the batteries in electric vehicles to store energy during off-peak hours and export it during peak hours. We develop a novel contract based on the VCG-mechanism, for exporting and importing electricity effectively, and show how this mechanism can raise efficiency, facilitate the development of a sustainable and efficient electricity market, and bring us nearer to our Net Zero Goal.